New to investing and have a managed isa fund.
What is the cash part? Is this not invested, what is it’s purpose?
Thanks.
Probably to pay the managed service fees from.
Looks like a dividend got paid today and went into the cash part.
Can this cash part not be invested as well, does there need to be over £100 in sitting there.
my portfolio has 2.1% in £460, why cant it be in CSH2?
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I’ve been wondering this as well - odd to have uninvested cash and also an allocation to CSH2.
There’s consistently a uninvested cash amount - could be invested in CSH2 and IE just redeem some CSH2 when needed for fees
Hopefully someone will be along that can answers the questions soon.
My understanding
If you have dividend payments and have not selected auto invest cash it will sit there as cash, but because the cash is part of the ISA gain you can invest it without affecting any remaining unused ISA Allowance.
I always turn auto invest cash on.
Go to the pie, options, Auto Invest Cash.
Hope this helps.
That is because you do not need it.
All funds in a Managed Portfolio are automatically reinvested. They keep a certain amount of cash in the portfolio by design to pay for the charges. You can, of course, setup a saving plan to pay into the Managed Portfolio and that will be invested automatically when it enters your portfolio.
There are no charges for a self-managed portfolio, so you can invest all the cash but you need auto invest so that both saving plan payments and any dividends received can be invested without you having to do that manually.
Thanks for explaining, so this is why no option for auto invest.
Surely there is no need to keep so much for cash considering the low charges?
I would like to do a self managed fund but not sure where to start.
If you want to understand why IE keep so much cash in a managed portfolio then I suggest that you raise a support ticket with them (I do not work for IE).
Regarding a DIY fund. For me the main advantage is that I can pick exactly what risk I want to take and any bad consequences are down to me.
The idea of a managed portfolio is to leave all that hassle to someone else to deal with.
I say ‘all that hassle’, it is not actually that much hassle. What I suggest is that you have a think about how much risk you want to take and how much effort you are willing to put into managing your investments to then decide which bonds, equities or other investments that IE offer will achieve your aims.
Regarding the actual mechanics of DIY investing, I suggest that you watch various YouTube videos including those made by IE themselves and do Google searches to research everything.
You can run a managed portfolio at the same time as a DIY portfolio and in all each of the four account types that IE run (GIA, ISA, SIPP and business). However, so far as I know, if you wish to transfer bonds and equities between managed and DIY accounts (and between account types) then you have to sell those investments, transfer the money and reinvest. So, for example, you might consider continuing with your managed fund as it is now and put all additional money into a DIY account.
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